Virgin Mobile set to takeover Helio

Virgin Mobile has received US government approval for its long awaited takeover of Helio. The terms of the deal proposes that all of Helio's 170,000 customers are handed over to Virgin but that the acquirer actually must pay higher rates to Sprint to use its network for calls and data.

The deal will also reduce Helio's current debt as well as give Helio directors two seats on Virgin's board.

Virgin is mainly a prepaid service and the new deal will give it immediate access to a subscription-based service that also "supplies much more advanced data services, which include both Internet-based radio and video streams as well as GPS-aware apps."

Because the approval was so recent, Virgin had not yet set out a long-term outline for its plans involving Helio or any word on new phones or features.